Netflix (NASDAQ:NFLX) Trading Down 4.3% on Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX)’s stock price fell 4.3% during mid-day trading on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $1,010.00 to $1,000.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Netflix traded as low as $835.11 and last traded at $837.36. 1,584,633 shares traded hands during trading, a decline of 37% from the average session volume of 2,516,036 shares. The stock had previously closed at $875.00.

Several other analysts also recently issued reports on NFLX. Oppenheimer upped their price target on shares of Netflix from $825.00 to $1,065.00 and gave the company an “outperform” rating in a report on Monday, December 16th. Morgan Stanley upped their target price on Netflix from $820.00 to $830.00 and gave the company an “overweight” rating in a research note on Friday, October 18th. Benchmark raised their price target on Netflix from $555.00 to $720.00 and gave the stock a “sell” rating in a research report on Friday, January 3rd. Wells Fargo & Company boosted their price target on Netflix from $758.00 to $797.00 and gave the stock an “overweight” rating in a report on Friday, October 18th. Finally, Barclays reiterated an “underweight” rating and set a $550.00 price objective on shares of Netflix in a research report on Friday, October 18th. Two analysts have rated the stock with a sell rating, ten have assigned a hold rating and twenty-four have assigned a buy rating to the stock. According to data from MarketBeat, Netflix has a consensus rating of “Moderate Buy” and a consensus target price of $824.00.

Insiders Place Their Bets

In related news, Director Richard N. Barton sold 6,364 shares of the company’s stock in a transaction dated Tuesday, January 7th. The shares were sold at an average price of $879.38, for a total value of $5,596,374.32. Following the completion of the sale, the director now owns 246 shares of the company’s stock, valued at $216,327.48. This represents a 96.28 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Gregory K. Peters sold 4,186 shares of the business’s stock in a transaction dated Friday, October 18th. The stock was sold at an average price of $750.00, for a total transaction of $3,139,500.00. Following the sale, the chief executive officer now owns 13,090 shares in the company, valued at $9,817,500. This trade represents a 24.23 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 156,742 shares of company stock valued at $131,030,268 over the last quarter. Insiders own 1.76% of the company’s stock.

Hedge Funds Weigh In On Netflix

Several hedge funds have recently modified their holdings of the company. AGF Management Ltd. lifted its stake in Netflix by 3.4% during the second quarter. AGF Management Ltd. now owns 3,872 shares of the Internet television network’s stock valued at $2,613,000 after buying an additional 129 shares in the last quarter. Vest Financial LLC boosted its stake in Netflix by 11.5% in the 2nd quarter. Vest Financial LLC now owns 706 shares of the Internet television network’s stock worth $476,000 after purchasing an additional 73 shares during the period. Federated Hermes Inc. boosted its stake in Netflix by 42.9% in the 2nd quarter. Federated Hermes Inc. now owns 72,844 shares of the Internet television network’s stock worth $49,161,000 after purchasing an additional 21,858 shares during the period. 1ST Source Bank purchased a new position in Netflix during the 2nd quarter worth approximately $239,000. Finally, Westover Capital Advisors LLC raised its stake in Netflix by 4.5% during the 2nd quarter. Westover Capital Advisors LLC now owns 10,210 shares of the Internet television network’s stock valued at $6,891,000 after purchasing an additional 437 shares during the period. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Netflix Price Performance

The company has a market cap of $358.08 billion, a PE ratio of 47.41, a price-to-earnings-growth ratio of 1.77 and a beta of 1.27. The stock has a fifty day moving average price of $878.06 and a 200-day moving average price of $753.25. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.13 and a quick ratio of 1.13.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings data on Thursday, October 17th. The Internet television network reported $5.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.09 by $0.31. Netflix had a return on equity of 35.86% and a net margin of 20.70%. The firm had revenue of $9.82 billion during the quarter, compared to the consensus estimate of $9.77 billion. On average, equities analysts expect that Netflix, Inc. will post 19.78 earnings per share for the current year.

Netflix Company Profile

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.